• After delaying investment 93% looking to spend to attract teachers and enhance facilities

Independent schools are looking to boost the amount they invest in facilities and teachers after years of cutting back, new research* with headteachers, bursars and finance managers at fee-paying schools by Premium Credit shows.

However the increased investment will mean fee increases above the historic rate of between 3% and 4%**, as shown by the study by the leading finance company that provides funding to parents enabling them to spread the cost of their children’s school fees.

Almost all (93%) questioned said they are looking to increase investment both to attract the best teachers and enhance facilities and admitted investment had been delayed or cancelled over the past three years. Around nine out of 10 (86%) said they had held back because of issues around collecting school fees against a backdrop of uncertainty firstly around a possible change of Government and secondly around timing of VAT imposition following a change of Government.

More than three out of four (78%) say they expect the level of investment in facilities and staff to increase over the next two years including a third (33%) expecting an increase of 10% or more. Around 18% say investment will fall while 4% say it will stay the same.

The research found 78% of headteachers, bursars and finance managers at independent schools believe fees will rise faster than their historic rate even without the impact of the introduction of VAT on school fees at the start of the year.

Around one in 10 (9%) said they either will not raise fees or will reduce them at their next fee review in response to the introduction of VAT.

The table below shows the areas in which schools have cut back or cancelled investment over the past three years due to issues with collecting fees. Buying teaching materials and hiring of support staff were the most likely to have been impacted.

The total amount lent through Premium Credit’s School Fee Plan (SFP) last year is around 15% higher than in 2022. Total lending increased by 5% last year compared to 2023. The average amount of funding through SFP is now around £21,735, which is 11% higher than 2023 and 19% higher than in 2022.

Stewart Ward, Director Education Sector & Head of School Fee Plan, Premium Credit said: “Independent schools are committed to boosting investment in their facilities and the study shows they are planning for the future.

“To be successful schools need to invest and most expect increased investment over the next two years which inevitably comes at a price for parents, meaning likely fee increases above historic rates.”

For further information on SFP, please visit School Fee Plan

Notes:
• * Premium Credit commissioned market research company Pureprofile to conduct research with 100 head teachers, bursars and finance managers at fee paying schools in the UK. The research was conducted online during March 2025
• ** https://www.schoolfeeschecker.co.uk/blog/school-fees-2023.php estimates fees have risen between 3% and 4% a year since 2016
• For 30 years, SFP has helped parents finance their children’s independent school fees by enabling them to spread the cost rather than paying a lump sum each term. SFP is the convenient and manageable way for parents to pay for independent school fees and extras such as music tuition and trips. It splits the cost into regular monthly direct debits, like any other household bill.
The process of applying for SFP for both parents and schools is seamless. Parents apply to open their account online before the beginning of any term. If the application is approved, SFP will notify the parents and the school. SFP sends the full payment to the school at the start of each term.